Tax Question

[bear24]

Any Cyclone accountants know if you can file married jointly on federal but married separately in Iowa or is that a no-no?

 

[CysRage]

Any Cyclone accountants know if you can file married jointly on federal but married separately in Iowa or is that a no-no?

That is perfectly fine. Just submitted ours today that way.

 

[ArgentCy]

Iowa tax code is dumb and I think many end up this way. Not sure why other than they have just about zero deductions.

 

[IcSyU]

You're almost always better off in Iowa doing so.

 

[coyoteclone]

Only way we have filed in 40 years.......

 

[titleist]

please explain why this would be a tax advantage.

Thanks

 

[CycloneDaddy]

As others have said yes you can as Ive been doing that for over 10 years.

 

[bear24]

Thanks for the replies, just saved me some $$$

 

[CyCloned]

You're almost always better off in Iowa doing so.

Generally the only time it is better to file married filing jointly on an Iowa return is when one spouse has a lot more taxable income than the other. Like when one is on Social Security and the other one is not.

 

[isufbcurt]

Any Cyclone accountants know if you can file married jointly on federal but married separately in Iowa or is that a no-no?

Yes. Most of my married clients are filed this way.

 

[MuskieCy]

The state of Iowa allows married couples to separate their incomes on the income tax return. This allows each spouse to be taxed at their individual rate, not their joint on come rate. A big advantage when each has widely differing taxable income.

Itemized deductions are split as per the percentage established by the line 26 income ratio. The tax is then used at the level of each separate income.

An example, a spouse with a taxable income of $5000 will be taxed at that rate, not the rate of their joint income of $100K. Big break.